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Examveda

If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to___________.

A. the tax treatment of capital gains

B. the cumulative wealth effect

C. dividends

D. profits

Answer: Option C

Solution(By Examveda Team)

If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to dividends. A dividend is the distribution of reward from a portion of the company's earnings and is paid to a class of its shareholders.

This Question Belongs to Commerce >> Financial Management

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